Pradhan Mantri Jeevan Jyoti Bima Yojana is basically a life-insurance scheme. But, this life insurance scheme is backed by the government of India. So, it is definitely more reliable. Also, this is a renewable scheme. So, you can take an insurance under the Pradhan Mantri Jeevan Jyoti Bima Yojana for one year and then renew it.
Various banks in India are providing the Pradhan Mantri Jeevan Jyoti Bima Yojana. Backed by the Ministry of Finance, this scheme will certainly make life insurance easy for common man in India. As Arun Jaitley announced the launch of the scheme, it has caught the attention of general public in India. Read on to know more about the features of the scheme.
Key Features of the Pradhan Mantri Jeevan Jyoti Bima Yojana
- The scheme will provide 1 year coverage to the insured.
- One can renew the insurance after completion of one year.
- It is possible to exit from the scheme anytime. Also, once you exit, it is possible to join the scheme later.
- The master policy holder in your case is the participating bank.
- The claim process under the Pradhan Mantri Jeevan Jyoti Bima Yojana is also very easy. You can simply claim the cover and make use of the subscriber friendly options under the scheme.
- If the person crosses the age of 55 years, the death cover will go void.
- If a person tries to get the PMJJBY cover through 2 or more accounts, the death cover will go void.
- A person has to keep enough balance in his/her savings account all the time. Otherwise, the death cover will go void.
- You can join the scheme in the initial year itself. And, if you are unable to join in the initial year due to certain reasons, you can join it in later years. In this case, you will need to submit a medical certificate confirming you are in good health.
- As far as someone fulfils the eligibility criteria, he/she can join the scheme in coming years.
What are the Key Benefits of the Pradhan Mantri Jeevan Jyoti Bima Yojana?
The major benefit of the Pradhan Mantri Jeevan Jyoti Bima Yojana is Rs. 2 lakh death cover. However, it holds some other benefits too. Read on to know about them.
- The premium amount for the Pradhan Mantri Jeevan Jyoti Bima Yojana is as low as Rs. 330 per year. This comes down to less than Re1 per day. So, it is definitely an affordable life insurance plan.
- If the insured dies in a certain year due to any reason, the nominee will get a sum of Rs. 2 lakhs.
- The claim process is user-friendly and not bank friendly. This means that you can get the claim instantly. The good thing about the scheme is that medical examination is not required during the time of claim.
- Enrolling to the Pradhan Mantri Jeevan Jyoti Bima Yojana is also very easy.
- The scheme will also provide income tax benefits under the regular income tax laws. This means that whatever amount you contribute to the Pradhan Mantri Jeevan Jyoti Bima Yojana, will exempt from your tax.
- You can choose the auto-debit option. In such a case, the bank will deduct renew fee from your account and renew your scheme annually.
Keep in mind that the Pradhan Mantri Jeevan Jyoti Bima Yojana does not hold any maturity or surrender benefit. Also, if a person joins the scheme newly, he cannot claim the cover within first 45 days. This is known as lien period. In case the insured dies within this time, the bank will not give the claim.
Who is Eligible for Pradhan Mantri Jeevan Jyoti Bima Yojana?
- The minimum age to apply for the scheme is 18 years and the maximum age is 50 years.
- One should have a savings bank account in one of the participating banks.
- The Pradhan Mantri Jeevan Jyoti Bima Yojana is applicable only for one savings account. Hence, in case you have multiple accounts, you cannot ask for multiple covers.
- One should have a valid Aadhar number to join this scheme.
- If the person does not join the scheme initially due to certain reasons, and decides to join the scheme later, he needs to produce a medical certificate.
How to Apply for the Pradhan Mantri Jeevan Jyoti Bima Yojana
Applying for the Pradhan Mantri Jeevan Jyoti Bima Yojana is fairly easy. You have to follow the following simple steps.
- Download the application form for the scheme from the official website.
- Get the form printed.
- Fill out the form giving your correct details.
- Submit the form at the bank branch where you have your savings account.
- Before submitting the form, make sure that you have sufficient funds in your savings account.
You can also apply for the scheme online. For this, you need to have net banking access to your savings account. Just log on to your bank website and go to the tab “Insurance”. There, you can select the scheme as “Pradhan Mantri Jeevan Jyoti Bima Yojana”. And then, read on the terms and conditions and accept them by clicking on “Confirm”.
The bank website will then send you an SMS or email acknowledging you that your service is now active.
How will the Pradhan Mantri Jeevan Jyoti Bima Yojana benefit the Government?
The Pradhan Mantri Jeevan Jyoti Bima Yojana is facing criticism by banks. This is because the policy is user friendly and banks are paying more rather than receiving. So, how is this policy going to benefit the government? Read on to know.
- The government is trying to reduce the number of zero balance savings accounts.
- Since the people will keep some amount in their accounts for sure, banks will not have to worry much.
You can let us know your opinion on the scheme through the comments section below. Post your queries. We would get back to you in minimum possible time.